FX conversion costs can quietly eat into your investment returns. Learn how they work, why they matter, and how IG Markets' 0% FX Markup promotion can help reduce one component of these costs.
This post was created in partnership with IG Markets. All views and opinions expressed in this article are Beansprout's objective and professional opinions.
What happened?
One question that often comes up in the Beansprout community is "Which brokerage should I use to invest in US stocks?"
Naturally, many investors compare commission rates, platform fees, and the range of markets available.
Over the past few years, zero commission trading has become one of the biggest selling points for online brokerages.
As a result, investing in overseas stocks and ETFs has become more accessible than ever for Singapore investors.
But there's another cost that often goes unnoticed, which is foreign exchange (FX) conversion.
If you're buying overseas stocks, you'll usually need to convert your Singapore dollars into another currency first....